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ELRCPartially AllowedELRC Cause at Mombasa (memorandum of claim filed February 5, 2020)· [2022] KEELRC 1366 (KLR)

Gonzi & 5 others v Kenya Shipping Clearing Freight Logistics Warehouses Workers Union & another (Cause 6 of 2020) [2022] KEELRC 1366 (KLR)

Employment and Labour Relations Court
8 July 2022
4,860 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~19 min to read original · ~4 min brief

The bottom line

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The Employment Court in Mombasa ruled that union members can sue their own union and forced it to publish audited accounts dating back to 2015.

What this practically means

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Executive summary

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Six officials and members of the Kenya Union of Commercial Food and Allied Workers filed a memorandum of claim on February 5, 2020 through Khaminwa & Khaminwa Advocates. They sought an order compelling the Union Secretary to render full and true audited accounts from 2015; mandamus against the Registrar of Trade Unions to act on a section 47(2) complaint; orders compelling the union to convene an AGM and a National Executive Council meeting; and costs. The claim followed a letter of August 27, 2019 alleging mismanagement of union funds, failure to file annual returns, and failure to convene NEC or AGM meetings since 2016. The union defended the claim, asserting the claimants lost standing after the February 28, 2021 elections and that internal constitutional mechanisms had not been invoked. The Registrar did not file a response. The court held the claimants had locus standi as members actualising their freedom of association rights, applying Alfred Njau & 5 others v City Council of Nairobi. It found the union, as a body corporate bound by article 10(2) national values, had run its affairs contrary to its constitution by failing to hold meetings and render audited accounts. The order for accounts issued against the union itself, since the Secretary General was not a party. Mandamus was refused because section 47(2) confers a discretion and the claimants could complain themselves. The AGM prayer was overtaken by the February 28, 2021 conference; the NEC prayer was declined for failure to invoke rule 8(3). The claim was partially allowed with no orders on costs, accounts due by December 1, 2022.

Key legal issues

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01

Locus standi of union members and officials to sue the union

Holding

The claimants, as members of the union, had a sufficient interest and requisite standing to file the suit

Reasoning

There was no dispute that the claimants were members of the union and directly affected by the allegations. They had a sufficient interest in the application of union funds and governance. Their suit was an actualisation of the constitutional right under article 41(2)(c) to participate in trade union activities and the statutory rights under section 4 of the Labour Relations Act. The court applied the Alfred Njau definition of locus standi.

p. 5
02

Whether a case of mismanagement of funds could be urged against the union itself

Holding

It was not misconceived; the union as a body corporate has distinct obligations including to its members and may be ordered to render accounts

Reasoning

Section 21 of the Labour Relations Act confers on a registered trade union perpetual succession and capacity to sue and be sued. The union was bound by article 10(2) national values in its internal governance. The evidence established that no NEC or AGM meetings were held as the constitution required and audited accounts were not rendered, so the order to render accounts would issue against the union as a body corporate, not against the Secretary General who was not a party.

p. 6
03

Whether mandamus should issue against the Registrar of Trade Unions

Holding

The prayer for mandamus was declined

Reasoning

The failures identified fell squarely on the union and no person was alleged culpable as envisaged in section 47 of the Act. Mandamus issues only where a public body required to perform a duty has refused; section 47(2) confers a discretion, not a duty. The claimants themselves could make the complaint under section 47(1), which operates as a bar to mandamus.

p. 7
04

Whether prerogative orders may be sought in an ordinary suit

Holding

Yes; rule 7(3) of the ELRC (Procedure) Rules permits enforcement of constitutional rights in a statement of claim

Reasoning

The parties did not address the point but the court held that the claimants were entitled to seek mandamus in an ordinary suit. Rule 7(3) allows a party to seek enforcement of constitutional rights and freedoms in a statement of claim, and the definition of 'suit' in the rules includes claims, petitions and applications for judicial review, saving the mixed suit.

p. 8

Legal principles established

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  • Members of a trade union have locus standi to sue over the application of union funds and governance in actualisation of their constitutional and statutory right to freedom of association
  • A registered trade union is a body corporate with distinct rights and obligations, and is bound by the national values and principles of governance under article 10(2) of the Constitution even in its internal governance
  • A party may seek the prerogative order of mandamus in an ordinary suit before the ELRC by virtue of rule 7(3) of the ELRC (Procedure) Rules
  • Mandamus cannot issue to compel performance of a duty which the complainant could himself perform

Court orders

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  1. 1.The order compelling the 1st respondent to render full and true accounts of its management and affairs including audited accounts for the period between March 13, 2015 until the date of the judgment (prepared on annual basis), to file the same in court and with the 2nd respondent, and to serve the claimants, not later than December 1, 2022
  2. 2.There be no orders on costs

Authorities

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Legislation

  • Constitution of Kenya, 2010article 41(4), article 41(2)(c), article 10(2)
  • Labour Relations Act, 2007sections 8, 4(1), 4(2), 21, 41, 47(1), 47(2)
  • Employment and Labour Relations Court (Procedure) Rulesrule 7(1), 7(2), 7(3) and definition of 'suit'
  • Law Reform Actsections 8 and 9
  • Civil Procedure Rulesorder 53
  • Constitution of Kenya (Protection of Rights and Fundamental Freedoms and Enforcement of the Constitution Practice and Procedure Rules, 2012

Cases cited (1)

  • Alfred Njau & 5 others v City Council of Nairobi
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over trade union disputes under the Labour Relations Act, 2007 and Article 41 of the Constitution of Kenya, 2010

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Gonzi & 5 others v Kenya Shipping Clearing Freight Logistics Warehouses Workers Union & another (Cause 6 of 2020) [2022] KEELRC 1366 (KLR)", Case Analysis (2022). ELRC Cause at Mombasa (memorandum of claim filed February 5, 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1366/eng@2022-07-08

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.